Global Hazardous Goods Logistics Market Addressing Growing Need for Safer Lithium Batteries Shipments
The global hazardous goods transportation market is estimated to witness steady growth from 2020 through 2025… and the United States hazardous goods logistics market is estimated to witness a steady growth over the same forecast period, due to the presence of robust infrastructure and growing oil trade in the United States. The presence of industry leaders in the US hazardous goods logistics market provided a thrust to the market movement. Hazardous materials make up a significant portion of the global freight, because they include many widely used commodities and products. Gasoline and other petroleum products are estimated to account for a significant share while lithium batteries seem to have carved out their own regulatory landscape. The transporting of hazardous materials requires special precautions, handling, and packaging. There are specialized safety regulations, standards, and reporting systems in place for pipelines, rail, highway, air, and marine vehicles that transport hazardous materials. These special requirements recognize the incidents involving in the transportation of hazardous materials, which can affect the environment, in addition to the potential risks of injuries and deaths. Active stocks in news today include:KULR Technology Group, Inc. (OTCQB: KULR), United Parcel Service, Inc. (NYSE:UPS), FedEx Corporation (NYSE: FDX), ZTO Express (Cayman) Inc. (NYSE: ZTO), YRC Worldwide Inc. (NASDAQ: YRCW).
The Rechargeable Battery Association (PRBA) challenged the National Transportation Safety Board’s recommendations that would ban shipments by air of prototype lithium batteries. In a letter to the U.S. Department of Transportation’s Pipeline and Hazardous Materials Safety Administration, PRBA warned that implementation of the NTSB’s recommendations would prevent its members from operating globally and “endanger the safety of medical patients” who depend on lithium batteries to power life-saving medical devices such as ventilators. Likewise, the NTSB’s recommendations “would jeopardize the ability of the United States military” to protect combat soldiers using equipment powered by lithium batteries. The PRBA solution was simple… Rather than banning air shipments of prototype lithium batteries, PRBA encouraged DOT to share with international dangerous goods aviation authorities its regulatory and technical expertise on issuing lithium battery special permits and approvals that the department has acquired over the past 30 years.
KULR Technology Group, Inc. (OTCQB: KULR) BREAKING NEWS – KULR Technology Group and Hazmat Safety Consulting Begin Work to Improve Industry Standards for Commercial Shipments of Batteries – KULR Technology Group, (the “Company” or “KULR”) today announced that the Company has commenced work on helping establish updated industry safety standards for lithium battery packaging used to ship batteries commercially. In April 2020, the Company announced a partnership with Hazmat Safety Consulting (“Hazmat”), an organization with over 60 years of combined experience in developing, influencing, and interpreting lithium battery safety regulations for the safe transport of lithium batteries.
This week, KULR is participating in meetings of the United Nations Transport of Dangerous Goods Sub-Committee Informal Working Group to establish test methods and criteria by which lithium batteries can be more effectively regulated based on their inherent hazards. On September 15, 2020, the Company will present to a subcommittee of the Transportation Research Board on the Prevention of Thermal Runaway Propagation in Lithium Batteries. KULR’s passive propagation resistant (PPR) design solutions prevent dangerous cell-to-cell thermal runaway propagation. KULR’s PPR solutions were recently adopted by NASA for use in future space missions.
Lithium battery fires — such as the incidents that destroyed a UPS plane in 2010 and a FedEx truck in 2016– have increasingly become a public safety concern. The National Transportation Safety Board (NTSB) has called for stricter testing and shipping standards for lithium batteries and submitted safety recommendations to the Pipeline and Hazardous Materials Safety Administration (PHMSA), a division of the Department of Transportation responsible for developing, issuing, and enforcing safety regulations for the transport of hazardous materials, in May 2020.
“Bob Richard, President of Hazmat, who formerly served as the Deputy Associate Administrator for the PHMSA and Chairman of the UN Sub-Committee of Experts on the Transport of Dangerous Goods, will be instrumental in guiding us through the steps required to implement minimum packaging standards required to ship lithium batteries,” said Michael Mo, CEO of KULR. “Our PPR technologies are world-class solutions for preventing dangerous battery fires, and we share the NTSB’s, concerns about current safety standards. Requiring that lithium batteries be shipped in packaging capable of preventing thermal runaway propagation makes logical sense and should be taken into serious consideration by the PHMSA.” Read this entire press release and more news for KULR at: https://www.financialnewsmedia.com/news-kulr
In other industry news this week of note includes:
United Parcel Service, Inc. (NYSE:UPS) News – Ware2Go, a UPS Company that helps merchants simplify fast delivery to customers, recently announced a new e-commerce partnership and integration with Google Shopping. The integration will dynamically display free, fast delivery promises within merchants’ Google ads, based on real-time inventory availability across Ware2Go’s fulfillment network. These annotations will help merchants optimize ad efficiency using Google Shopping, driving revenue by advertising free, fast shipping offers much earlier in the buyer’s journey, including at the point of initial product research via Google Search.
“Ware2Go is committed to building relationships with partners that enable merchants to exceed customer expectations across commerce,” commented Ware2Go CEO Steve Denton. “By pairing the new Google Free and Fast offering with our flexible and scalable fulfillment solution, merchants can grow their market demand faster by positioning their delivery speed as a revenue driver.”
Details release by FedEx Corporation (NYSE: FDX) regarding shipping lithium batteries: There are several regulations surrounding the safe transport of lithium batteries. Remember: all types of lithium batteries are considered Dangerous Goods and must be handled and labeled properly. The type of lithium battery, quantity, electric capacity, charge and how they’re packed — whether they’re contained within equipment, shipped with equipment or all alone — are all determining factors in how to pack and label lithium battery shipments. Whether it be by air, ocean, rail or truck, there are many regulations in place and it can be difficult to know how to properly pack, label and ship these batteries.
Damaged, defective or recalled batteries are forbidden for air transport. However, batteries which have some other defective feature (e.g., batteries with the incorrect model number on the label or batteries not holding enough charge) could still be shipped by air.
ZTO Express (Cayman) Inc. (NYSE: ZTO), a leading and fast-growing express delivery company in China, recently announced its unaudited financial results for the first quarter ended March 31, 2020. Although adversely affected by the global pandemic COVID-19 outbreak, the Company delivered 4.9% volume growth to reach 2.4 billion parcels and achieved better than expected adjusted net income of RMB635.1 million.
First Quarter 2020 Financial Highlights were: Revenues were RMB3,915.9 million (US$553.0 million), a decrease of 14.4% from RMB4,574.0 million in the same period of 2019; Gross profit was RMB818.7 million (US$115.6 million), a decrease of 35.0% from RMB1,259.6 million in the same period of 2019; Net income was RMB371.0 million (US$52.4 million), a decrease of 45.6% from RMB681.6 million in the same period of 2019; Adjusted EBITDA was RMB1,173.4 million (US$165.7 million), a decrease of 18.6% from RMB1,441.0 million in the same period of 2019; Adjusted net income was RMB635.1 million (US$89.7 million), a decrease of 34.3% from RMB966.4 million in the same period of 2019; Basic and diluted earnings per American depositary share (“ADS”) were RMB0.48 (US$0.07), a decrease of 44.8% from RMB0.87 in the same period of 2019; Adjusted basic and diluted earnings per American depositary share attributable to ordinary shareholders were RMB0.82 (US$0.12), a decrease of 33.3% from RMB1.23 in the same period of 2019; and Net cash provided by operating activities was RMB 177.8 million (US$25.1 million), compared with RMB 633.3 million in the same period of 2019.
YRC Worldwide Inc. (NASDAQ: YRCW) has recently launched a custom pool distribution freight solution for a major American, domestic houseware merchandise chain operating more than 1,400 retail stores in North America. In addition to the new strategic pool distribution partnership in the Georgia, Tennessee and Alabama markets, the customer’s partnership expands with the YRC Worldwide companies, collectively a tier-one LTL provider for the retailer.
“Having the opportunity to service this major retailer’s distribution needs is a testament to the strength and flexibility of YRCW companies’ comprehensive LTL network, combined with HNRY’s distribution capabilities,” said Jason Bergman, YRCW Chief Customer Officer and HNRY Logistics President. “The YRCW companies are dedicated to customers that are critical to America’s supply chain and economic recovery and making it easy for them to do business with us.”